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2021-07-02

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A Wave of Earnings Restatements Slams a Hot Market<blockquote>一波收益重述冲击火热市场</blockquote>

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{"i18n":{"language":"zh_CN"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":156640090,"tweetId":"156640090","gmtCreate":1625220795910,"gmtModify":1631893965450,"author":{"id":4087525630006260,"idStr":"4087525630006260","authorId":4087525630006260,"authorIdStr":"4087525630006260","name":"Khing","avatar":"https://static.tigerbbs.com/0ca8ec9b0a8e06d222fcc8b6eec1fa30","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":11,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":2,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body>Wow</body></html>","htmlText":"<html><head></head><body>Wow</body></html>","text":"Wow","highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/156640090","repostId":1129356287,"repostType":4,"repost":{"id":"1129356287","kind":"news","pubTimestamp":1625220037,"share":"https://www.laohu8.com/m/news/1129356287?lang=zh_CN&edition=full","pubTime":"2021-07-02 18:00","market":"us","language":"en","title":"A Wave of Earnings Restatements Slams a Hot Market<blockquote>一波收益重述冲击火热市场</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1129356287","media":"The Wall Street Journal","summary":"Accounting guidance from the Securities and Exchange Commission has led to a big slowdown in SPACs.\n","content":" Accounting guidance from the Securities and Exchange Commission has led to a big slowdown in SPACs. More than 540 companies have restated their financial accounts in the past three months, higher than every full year since 2013, to comply with a directive from Washington, new data show.<blockquote>美国证券交易委员会的会计指导导致SPAC大幅放缓。新数据显示，过去三个月，超过540家公司重述了财务账目，高于2013年以来的每一整年，以遵守华盛顿的指令。</blockquote> The guidance from the Securities and Exchange Commission hasn’t had a big impact on investors but has helped cause a big slowdown in one of the market’s hottest areas.<blockquote>美国证券交易委员会的指导意见并未对投资者产生重大影响，但却导致市场最热门领域之一大幅放缓。</blockquote> The SEC’s statement targeted special-purpose acquisition companies, saying in April thatsome were improperly accounting for warrants. The guidance took the market by surprise, according to analysts. Issuance of SPACs has tumbled since. What’s more, some SPACs used the restatements to disclose other more serious problems.<blockquote>美国证券交易委员会的声明针对的是特殊目的收购公司，四月份表示，一些公司对认股权证的会计处理不当。分析师表示，这一指引令市场感到意外。此后，SPAC的发行量大幅下降。此外，一些SPAC利用重述披露了其他更严重的问题。</blockquote> SPACs, or blank-check companies, are shells that raise money and list on an exchange, with the goal of merging with a private firm and taking it public. Many issue warrants as part of the fundraising, giving investors the right to buy stock in the new entity created by the merger at an arranged price. The warrants are seen as animportant inducement for investorsin what are typically high-risk early-stage companies.<blockquote>SPAC，或空白支票公司，是筹集资金并在交易所上市的空壳，目标是与私营公司合并并上市。许多公司发行认股权证作为融资的一部分，赋予投资者以约定价格购买合并创建的新实体股票的权利。认股权证被视为对通常高风险早期公司投资者的重要诱因。</blockquote> <img src=\"https://static.tigerbbs.com/4b60b5f5992aee0f496e53d24daf7e74\" tg-width=\"313\" tg-height=\"408\" referrerpolicy=\"no-referrer\"><blockquote></blockquote> For years, SPACs and companies that had merged with SPACs treated these warrants as equity in their financial statements. The SEC in April said certain features of many of the warrants, such as better terms being offered to sponsors than outside investors, meant they should instead be treated as liabilities. One reason is that there is the potential for a cash payout in some circumstances.<blockquote>多年来，SPAC和与SPAC合并的公司在财务报表中将这些认股权证视为股权。美国证券交易委员会4月份表示，许多认股权证的某些特征，例如向保荐人提供的条款比外部投资者更好，意味着它们应该被视为负债。一个原因是在某些情况下有可能支付现金。</blockquote> An SEC spokesman said the issue addressed in its April statement was “not a new accounting question.” Guidance on how to classify warrants was included in accounting rules more than a decade ago, the spokesman said.<blockquote>SEC发言人表示，其4月份声明中提到的问题“不是一个新的会计问题”。该发言人表示，十多年前，会计规则中就包含了如何对认股权证进行分类的指导。</blockquote> SPACs were booming when the SEC dropped its accounting bombshell. The regulator’s guidance forced a scramble among auditors and lawyers, as companies had to rethink their treatment of warrants before going public or completing mergers. At the same time, shares of popular companies tied to SPACs were tumbling, helping to stall new issuance.<blockquote>当SEC抛出会计重磅炸弹时，SPAC正在蓬勃发展。监管机构的指导迫使审计师和律师争先恐后，因为公司在上市或完成合并之前必须重新考虑对认股权证的处理。与此同时，与SPAC相关的热门公司的股价暴跌，导致新股发行停滞。</blockquote> The monthly amount raised by new blank-check companies plummeted from $35 billion in March to $3 billion in April and has yet to recover, according to data provider Dealogic. SPACs raised $3.9 billion in May and $3.2 billion in 2021 through June 24, the data show.<blockquote>根据数据提供商Dealogic的数据，新的空白支票公司每月筹集的金额从3月份的350亿美元暴跌至4月份的30亿美元，并且尚未恢复。数据显示，截至6月24日，SPAC在5月份筹集了39亿美元，在2021年筹集了32亿美元。</blockquote> “The SEC statement had the impact of immediately stopping the SPAC market—it shut everything down,” said David Larsen, a managing director at valuation firm Duff &amp; Phelps LLC. “We’re still dealing with the aftermath.”<blockquote>估值公司Duff&amp;Phelps LLC董事总经理David Larsen表示：“SEC的声明产生了立即停止SPAC市场的影响——它关闭了一切。”“我们还在处理善后事宜。”</blockquote> Deals are still getting done, with a steady stream of SPACs taking companies public in recent weeks. The slowdown may have helped take some of the speculative froth out of the market, according to analysts. “It allowed people to take their breath in a superheated market,” Mr. Larsen said.<blockquote>交易仍在完成，最近几周，SPAC源源不断地将公司上市。分析师表示，经济放缓可能有助于消除市场上的一些投机泡沫。“它让人们在过热的市场中喘口气，”拉森先生说。</blockquote> More than 540, or almost three-quarters, of active SPACs and companies taken public by SPACs have restated their financials to comply with the SEC rules. Of those, more than 200 have made a less serious type of restatement that doesn’t require alerting investors, according to an analysis by data provider Audit Analytics.<blockquote>超过540家（即近四分之三）的活跃SPAC和SPAC上市公司已重申其财务状况，以遵守SEC规则。根据数据提供商Audit Analytics的分析，其中200多家公司进行了不太严重的重述，不需要提醒投资者。</blockquote> A further 330 SPACs and SPAC targets have done the most serious type of correction—the kind for which a company has to alert investors and reissue its financial statements. That is more such restatements, in less than three months, than the annual total for all companies in every year since 2010, the analysis found.<blockquote>另外330家SPAC和SPAC目标公司已经进行了最严重的调整——公司必须提醒投资者并重新发布财务报表。分析发现，在不到三个月的时间里，此类重述的数量超过了自2010年以来所有公司每年的年度总数。</blockquote> Several companies taken public by SPACs also have restated other more serious aspects of their financial statements. Electric-truck startupLordstown MotorsCorp.disclosed in June “substantial doubt” about its ability to continue as a going concern through the end of this year. The company’s two top leaders later resigned over inaccuracies in the way it recorded preorders for its truck. Lordstownthis month saidit felt it had enough funding to carry it through May 2022 and was still trying to raise money.<blockquote>几家通过SPAC上市的公司也重述了其财务报表的其他更严重的方面。电动卡车初创公司洛兹敦汽车公司(Lordstown MotorsCorp.)在6月份披露，对其在今年年底前继续持续经营的能力存在“实质性怀疑”。该公司的两名高层领导后来因卡车预订记录方式不准确而辞职。洛兹敦本月表示，它认为有足够的资金将其维持到2022年5月，并且仍在努力筹集资金。</blockquote> ‘It’s been highly disruptive to the market and a huge distraction for companies. But investors are not fazed by these countless restatements.’&nbsp;— Joel Rubinstein, White &amp; Case partner Investors typically send stocks tumbling after major restatements, academic research has found. But these SEC-induced revisions are different.<blockquote>“这对市场具有很大的破坏性，也极大地分散了公司的注意力。但投资者并没有被这些无数的重述所吓倒。–Joel Rubinstein，White&amp;Case partner学术研究发现，投资者通常会在重大重述后导致股票暴跌。但这些SEC引发的修订是不同的。</blockquote> “It’s been highly disruptive to the market and a huge distraction for companies. But investors are not fazed by these countless restatements,” said Joel Rubinstein, a partner at law firm White &amp; Case.<blockquote>White&amp;Case律师事务所合伙人乔尔·鲁宾斯坦(Joel Rubinstein)表示：“这对市场具有很大的破坏性，也极大地分散了公司的注意力。但投资者并没有被这些无数的重述所困扰。”</blockquote> One reason is that SPACs are shell companies designed only to do deals. For SPACs that have yet to do a deal, investors typically don’t base their decisions on the companies’ financial performance, but instead judge the executive team.<blockquote>一个原因是SPAC是空壳公司，旨在只做交易。对于尚未达成交易的SPAC，投资者通常不会根据公司的财务业绩做出决定，而是对高管团队进行评判。</blockquote> There is continuing fallout from the SEC action: Treating the warrants as liabilities means they will have to be revalued every three months, when the company reports its latest financial results, as opposed to the one-off value if the warrants are included as equity.<blockquote>美国证券交易委员会的行动仍在产生持续的影响：将认股权证视为负债意味着它们必须每三个月在公司报告最新财务业绩时重新估值，而不是将认股权证计入股权时的一次性价值。</blockquote>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Wave of Earnings Restatements Slams a Hot Market<blockquote>一波收益重述冲击火热市场</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Wave of Earnings Restatements Slams a Hot Market<blockquote>一波收益重述冲击火热市场</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nThe Wall Street Journal2021-07-02 18:00\n\n</h4>\n</header>\n<article>\n Accounting guidance from the Securities and Exchange Commission has led to a big slowdown in SPACs. More than 540 companies have restated their financial accounts in the past three months, higher than every full year since 2013, to comply with a directive from Washington, new data show.<blockquote>美国证券交易委员会的会计指导导致SPAC大幅放缓。新数据显示，过去三个月，超过540家公司重述了财务账目，高于2013年以来的每一整年，以遵守华盛顿的指令。</blockquote> The guidance from the Securities and Exchange Commission hasn’t had a big impact on investors but has helped cause a big slowdown in one of the market’s hottest areas.<blockquote>美国证券交易委员会的指导意见并未对投资者产生重大影响，但却导致市场最热门领域之一大幅放缓。</blockquote> The SEC’s statement targeted special-purpose acquisition companies, saying in April thatsome were improperly accounting for warrants. The guidance took the market by surprise, according to analysts. Issuance of SPACs has tumbled since. What’s more, some SPACs used the restatements to disclose other more serious problems.<blockquote>美国证券交易委员会的声明针对的是特殊目的收购公司，四月份表示，一些公司对认股权证的会计处理不当。分析师表示，这一指引令市场感到意外。此后，SPAC的发行量大幅下降。此外，一些SPAC利用重述披露了其他更严重的问题。</blockquote> SPACs, or blank-check companies, are shells that raise money and list on an exchange, with the goal of merging with a private firm and taking it public. Many issue warrants as part of the fundraising, giving investors the right to buy stock in the new entity created by the merger at an arranged price. The warrants are seen as animportant inducement for investorsin what are typically high-risk early-stage companies.<blockquote>SPAC，或空白支票公司，是筹集资金并在交易所上市的空壳，目标是与私营公司合并并上市。许多公司发行认股权证作为融资的一部分，赋予投资者以约定价格购买合并创建的新实体股票的权利。认股权证被视为对通常高风险早期公司投资者的重要诱因。</blockquote> <img src=\"https://static.tigerbbs.com/4b60b5f5992aee0f496e53d24daf7e74\" tg-width=\"313\" tg-height=\"408\" referrerpolicy=\"no-referrer\"><blockquote></blockquote> For years, SPACs and companies that had merged with SPACs treated these warrants as equity in their financial statements. The SEC in April said certain features of many of the warrants, such as better terms being offered to sponsors than outside investors, meant they should instead be treated as liabilities. One reason is that there is the potential for a cash payout in some circumstances.<blockquote>多年来，SPAC和与SPAC合并的公司在财务报表中将这些认股权证视为股权。美国证券交易委员会4月份表示，许多认股权证的某些特征，例如向保荐人提供的条款比外部投资者更好，意味着它们应该被视为负债。一个原因是在某些情况下有可能支付现金。</blockquote> An SEC spokesman said the issue addressed in its April statement was “not a new accounting question.” Guidance on how to classify warrants was included in accounting rules more than a decade ago, the spokesman said.<blockquote>SEC发言人表示，其4月份声明中提到的问题“不是一个新的会计问题”。该发言人表示，十多年前，会计规则中就包含了如何对认股权证进行分类的指导。</blockquote> SPACs were booming when the SEC dropped its accounting bombshell. The regulator’s guidance forced a scramble among auditors and lawyers, as companies had to rethink their treatment of warrants before going public or completing mergers. At the same time, shares of popular companies tied to SPACs were tumbling, helping to stall new issuance.<blockquote>当SEC抛出会计重磅炸弹时，SPAC正在蓬勃发展。监管机构的指导迫使审计师和律师争先恐后，因为公司在上市或完成合并之前必须重新考虑对认股权证的处理。与此同时，与SPAC相关的热门公司的股价暴跌，导致新股发行停滞。</blockquote> The monthly amount raised by new blank-check companies plummeted from $35 billion in March to $3 billion in April and has yet to recover, according to data provider Dealogic. SPACs raised $3.9 billion in May and $3.2 billion in 2021 through June 24, the data show.<blockquote>根据数据提供商Dealogic的数据，新的空白支票公司每月筹集的金额从3月份的350亿美元暴跌至4月份的30亿美元，并且尚未恢复。数据显示，截至6月24日，SPAC在5月份筹集了39亿美元，在2021年筹集了32亿美元。</blockquote> “The SEC statement had the impact of immediately stopping the SPAC market—it shut everything down,” said David Larsen, a managing director at valuation firm Duff &amp; Phelps LLC. “We’re still dealing with the aftermath.”<blockquote>估值公司Duff&amp;Phelps LLC董事总经理David Larsen表示：“SEC的声明产生了立即停止SPAC市场的影响——它关闭了一切。”“我们还在处理善后事宜。”</blockquote> Deals are still getting done, with a steady stream of SPACs taking companies public in recent weeks. The slowdown may have helped take some of the speculative froth out of the market, according to analysts. “It allowed people to take their breath in a superheated market,” Mr. Larsen said.<blockquote>交易仍在完成，最近几周，SPAC源源不断地将公司上市。分析师表示，经济放缓可能有助于消除市场上的一些投机泡沫。“它让人们在过热的市场中喘口气，”拉森先生说。</blockquote> More than 540, or almost three-quarters, of active SPACs and companies taken public by SPACs have restated their financials to comply with the SEC rules. Of those, more than 200 have made a less serious type of restatement that doesn’t require alerting investors, according to an analysis by data provider Audit Analytics.<blockquote>超过540家（即近四分之三）的活跃SPAC和SPAC上市公司已重申其财务状况，以遵守SEC规则。根据数据提供商Audit Analytics的分析，其中200多家公司进行了不太严重的重述，不需要提醒投资者。</blockquote> A further 330 SPACs and SPAC targets have done the most serious type of correction—the kind for which a company has to alert investors and reissue its financial statements. That is more such restatements, in less than three months, than the annual total for all companies in every year since 2010, the analysis found.<blockquote>另外330家SPAC和SPAC目标公司已经进行了最严重的调整——公司必须提醒投资者并重新发布财务报表。分析发现，在不到三个月的时间里，此类重述的数量超过了自2010年以来所有公司每年的年度总数。</blockquote> Several companies taken public by SPACs also have restated other more serious aspects of their financial statements. Electric-truck startupLordstown MotorsCorp.disclosed in June “substantial doubt” about its ability to continue as a going concern through the end of this year. The company’s two top leaders later resigned over inaccuracies in the way it recorded preorders for its truck. Lordstownthis month saidit felt it had enough funding to carry it through May 2022 and was still trying to raise money.<blockquote>几家通过SPAC上市的公司也重述了其财务报表的其他更严重的方面。电动卡车初创公司洛兹敦汽车公司(Lordstown MotorsCorp.)在6月份披露，对其在今年年底前继续持续经营的能力存在“实质性怀疑”。该公司的两名高层领导后来因卡车预订记录方式不准确而辞职。洛兹敦本月表示，它认为有足够的资金将其维持到2022年5月，并且仍在努力筹集资金。</blockquote> ‘It’s been highly disruptive to the market and a huge distraction for companies. But investors are not fazed by these countless restatements.’&nbsp;— Joel Rubinstein, White &amp; Case partner Investors typically send stocks tumbling after major restatements, academic research has found. But these SEC-induced revisions are different.<blockquote>“这对市场具有很大的破坏性，也极大地分散了公司的注意力。但投资者并没有被这些无数的重述所吓倒。–Joel Rubinstein，White&amp;Case partner学术研究发现，投资者通常会在重大重述后导致股票暴跌。但这些SEC引发的修订是不同的。</blockquote> “It’s been highly disruptive to the market and a huge distraction for companies. But investors are not fazed by these countless restatements,” said Joel Rubinstein, a partner at law firm White &amp; Case.<blockquote>White&amp;Case律师事务所合伙人乔尔·鲁宾斯坦(Joel Rubinstein)表示：“这对市场具有很大的破坏性，也极大地分散了公司的注意力。但投资者并没有被这些无数的重述所困扰。”</blockquote> One reason is that SPACs are shell companies designed only to do deals. For SPACs that have yet to do a deal, investors typically don’t base their decisions on the companies’ financial performance, but instead judge the executive team.<blockquote>一个原因是SPAC是空壳公司，旨在只做交易。对于尚未达成交易的SPAC，投资者通常不会根据公司的财务业绩做出决定，而是对高管团队进行评判。</blockquote> There is continuing fallout from the SEC action: Treating the warrants as liabilities means they will have to be revalued every three months, when the company reports its latest financial results, as opposed to the one-off value if the warrants are included as equity.<blockquote>美国证券交易委员会的行动仍在产生持续的影响：将认股权证视为负债意味着它们必须每三个月在公司报告最新财务业绩时重新估值，而不是将认股权证计入股权时的一次性价值。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://www.wsj.com/articles/a-wave-of-earnings-restatements-slams-a-hot-market-11625218380?mod=rss_markets_main\">The Wall Street Journal</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite","SPY":"标普500ETF",".DJI":"道琼斯",".SPX":"S&P 500 Index"},"source_url":"https://www.wsj.com/articles/a-wave-of-earnings-restatements-slams-a-hot-market-11625218380?mod=rss_markets_main","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1129356287","content_text":"Accounting guidance from the Securities and Exchange Commission has led to a big slowdown in SPACs.\n\nMore than 540 companies have restated their financial accounts in the past three months, higher than every full year since 2013, to comply with a directive from Washington, new data show.\nThe guidance from the Securities and Exchange Commission hasn’t had a big impact on investors but has helped cause a big slowdown in one of the market’s hottest areas.\nThe SEC’s statement targeted special-purpose acquisition companies, saying in April thatsome were improperly accounting for warrants. The guidance took the market by surprise, according to analysts. Issuance of SPACs has tumbled since. What’s more, some SPACs used the restatements to disclose other more serious problems.\nSPACs, or blank-check companies, are shells that raise money and list on an exchange, with the goal of merging with a private firm and taking it public. Many issue warrants as part of the fundraising, giving investors the right to buy stock in the new entity created by the merger at an arranged price. The warrants are seen as animportant inducement for investorsin what are typically high-risk early-stage companies.\n\nFor years, SPACs and companies that had merged with SPACs treated these warrants as equity in their financial statements. The SEC in April said certain features of many of the warrants, such as better terms being offered to sponsors than outside investors, meant they should instead be treated as liabilities. One reason is that there is the potential for a cash payout in some circumstances.\nAn SEC spokesman said the issue addressed in its April statement was “not a new accounting question.” Guidance on how to classify warrants was included in accounting rules more than a decade ago, the spokesman said.\nSPACs were booming when the SEC dropped its accounting bombshell. The regulator’s guidance forced a scramble among auditors and lawyers, as companies had to rethink their treatment of warrants before going public or completing mergers. At the same time, shares of popular companies tied to SPACs were tumbling, helping to stall new issuance.\nThe monthly amount raised by new blank-check companies plummeted from $35 billion in March to $3 billion in April and has yet to recover, according to data provider Dealogic. SPACs raised $3.9 billion in May and $3.2 billion in 2021 through June 24, the data show.\n“The SEC statement had the impact of immediately stopping the SPAC market—it shut everything down,” said David Larsen, a managing director at valuation firm Duff & Phelps LLC. “We’re still dealing with the aftermath.”\nDeals are still getting done, with a steady stream of SPACs taking companies public in recent weeks. The slowdown may have helped take some of the speculative froth out of the market, according to analysts. “It allowed people to take their breath in a superheated market,” Mr. Larsen said.\nMore than 540, or almost three-quarters, of active SPACs and companies taken public by SPACs have restated their financials to comply with the SEC rules. Of those, more than 200 have made a less serious type of restatement that doesn’t require alerting investors, according to an analysis by data provider Audit Analytics.\nA further 330 SPACs and SPAC targets have done the most serious type of correction—the kind for which a company has to alert investors and reissue its financial statements. That is more such restatements, in less than three months, than the annual total for all companies in every year since 2010, the analysis found.\nSeveral companies taken public by SPACs also have restated other more serious aspects of their financial statements. Electric-truck startupLordstown MotorsCorp.disclosed in June “substantial doubt” about its ability to continue as a going concern through the end of this year. The company’s two top leaders later resigned over inaccuracies in the way it recorded preorders for its truck. Lordstownthis month saidit felt it had enough funding to carry it through May 2022 and was still trying to raise money.\n\n‘It’s been highly disruptive to the market and a huge distraction for companies. But investors are not fazed by these countless restatements.’ — Joel Rubinstein, White & Case partner\n\nInvestors typically send stocks tumbling after major restatements, academic research has found. But these SEC-induced revisions are different.\n“It’s been highly disruptive to the market and a huge distraction for companies. But investors are not fazed by these countless restatements,” said Joel Rubinstein, a partner at law firm White & Case.\nOne reason is that SPACs are shell companies designed only to do deals. For SPACs that have yet to do a deal, investors typically don’t base their decisions on the companies’ financial performance, but instead judge the executive team.\nThere is continuing fallout from the SEC action: Treating the warrants as liabilities means they will have to be revalued every three months, when the company reports its latest financial results, as opposed to the one-off value if the warrants are included as equity.","news_type":1,"symbols_score_info":{".SPX":0.9,".IXIC":0.9,".DJI":0.9,"SPY":0.9}},"isVote":1,"tweetType":1,"viewCount":583,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":3,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/156640090"}